JPM: Data Center Infrastructure - 100 GW Pipeline and Counting
Key Points
- AI datacenter pipeline totals ~110 GWs potential capacity, representing 5x+ current installed base
- However, annual installs are true revenue driver; pipeline is ~45x the 2023 installation rate
- Q2 2024 land deals related to potential 38 GWs in builds, with 1H building momentum continuing to accelerate
- US Census data shows datacenter spending at only 2% of non-residential construction spending; manufacturing is 9x larger
- V-shaped trajectory in datacenter spending accelerating through May 2024, supporting sequential increase in activity
Investment Implications
- Timing prediction difficult but early evidence suggests sustained buildout acceleration
- Datacenter spending share suggests room for continued expansion without overheating market
- Annual build rate acceleration (not total capacity) drives revenue for equipment suppliers
Source
- File:
JPM-EE_MI_ Data Center Infrastructure_ Data Center Deep Dive Part 2_ AI 100 GW Pipeline_22Jul24.pdf - Location: Dropbox/2. Semi/Datacenter/
- Pages: 21
- Date: July 22, 2024
- Analysts: C. Stephen Tusa Jr., Patrick M. Baumann, Chigusa Katoku, Chandreyee Sengupta
Related
- _MOC-datacenter
- jpm-datacenter-deep-dive-part1
Pages that link here (4)